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Since a credit score can depend on how many different accounts have outstanding balances, it's possible that debt consolidation can indeed improve your credit score.

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Debt consolidation has minimal effect on your credit. In most cases, you apply for a home refinance or debt consolidation loan and use the proceeds to pay your other debts. Although you will now have a single larger debt on your credit report, several small debts will be eliminated.

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Debt consolidation itself does not dramatically affect your credit score. However, the main issue with debt consolidation is that over 70% of consumers who consolidate their debts grow it back to the same level or higher according to(http://www.bankrate.com).

1. When you consolidate your debts, you are not learning how to manage your money better, you are performing a quick fixes, and quick fixes breakdown as fast as you put them together

2. You must take the necessary steps to learn how to manage your money by putting together a realistic budget

3. Create a simple to execute and even simpler to manage debt elimination plan

4. Make permanent decisions to change your spending patterns to spend cash for your purchases

Hope that helps

Ahmad Davis

http://www.victory-by-design.com

Read more: How_consolidation_affects_your_credit

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โˆ™ 2011-09-21 13:59:16
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Q: Does debt consolidation affect your credit score?
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Where can I get debt consolidation?

You can get credit score advice and debt consolidation information from your banker. They can order a credit bureau score for you and tell you what your score is, how to clean up your credit and perhaps lend you funds to consolidate and pay down the debt faster.


How does consolidation of debt affect the credit score?

If you are asking about a program, than no, it shouldn't affect your credit score. Visit her for more details: http://www.myfico.com./. Speak with your banking representative to be sure though.


Will my credit score affect my debt relief options?

Your credit score will not affect available debt relief plans so long as you go through a non-profit credit consolidation agency. There are many scams out there, so non-profit is the only way to go.


Does debit consolidation hurt your credit?

{| |- | There is a chance that using debt consolidation services might affect your credit. Some debt management programs, like credit counseling, show up on your credit report. Some solutions, like debt settlement, don't show up on your credit report, but by definition cause late payments. Most debt consolidation services are there to help you get out of debt, not to sustain your credit report or credit score, so you should priorotize what you really want in seeking debt consolidation help. |}


can someone give me credit score advice on consolidation debt?

There are many places online where you can get advice on consolidation debt. For more information, see loans.denturesky.com/where-can-i-get-financial-consultation-or-adv. Also you can order your credit score from equifax.com.


How do loans and debt consolidation affect credit score?

If you pay your bills on time and in full each month it will help your credit score rise. If you are late on payments and have outstanding payments then your credit score will become lower. Your credit score is an important thing to help you obtain loans such as car loans or a mortgage.


Does consolidating debt loan help improve your credit score?

A debt consolidation does absolutely nothing to improve your credit score. Consolidating debt causes you to simply borrow more money to pay off old debts.


Where can one find more information about debt consolidation rates?

Consolidating your debt with a personal loan can help โ€” and hurt โ€” your credit score. When you use the loan to pay off your credit cards, you lower your credit utilization, which measures how much of your credit limit is tied up. Lowering your credit utilization can bump your credit debtredemption. On the other hand, applying for a loan requires a hard credit check, which can temporarily ding your credit score. And if you turn around and rack up new credit card debt, your credit score will suffer.


Do liens affect credit score?

Yes. All debt is considered when calculating your credit score.


Does debt consolidation help credit score?

If you are struggling with overwhelming debt and have too many bills and not enough money to pay them all then you should always opt for consolidation Debt consolidation lowers your monthly payments and helps you get your finances under control....!"


How can debt consolidation help me and my family?

It can give you a better credit score, allowing you get a nice house, and car.


Is credit consolidation a scam?

No, not at all. My reviews were same till I have to use it for my credit card consolidation. The best way is to consult a debt consolidation company to consolidate your debts because they know your creditors and so that would not be shown on your credit report which in result will not affect your credit score I also did the same time before getting consolidated for credit card.


Does debt consolidation effect credit and credit score?

When you consolidate your debt, you might see a slight dip in your credit score, but that should only be temporary. If anything, your score will improve in the long term as long as you keep up with your payments and don't apply for other loans or lines of credit in the meantime. It's also best to keep your credit utilization ratio low, or stop using your cards altogether if they're the source of your debt.


What is the average minimum credit score required for obtaining a consolidation loan?

Depending on what lender you go to, you'll probably need a credit score of at least 540 if not higher. If debt consolidation loans are not a viable option for you, you may want to look into credit counseling services who can negotiate lower interest rates for you and can consolidate your debt.


What are some credit card payment consolidation hotlines that work?

Careone credit, Debt consolidation care, Consumer Credit and Debt Consolidation Services, Curadebt, Debt Options, and Net Debt all have three star ratings or higher for credit card payment consolidation. I would recommend any of their hotlines over competitors.


Can one use debt consolidation to receive a loan if one has a bad credit score?

There are some financial institutions that will loan money to those with a bad credit score for debt consolidation. To get the best rates and have the best chance of success, it would be best to put something valuable up for collateral.


Does the amount of a debt affect your credit score?

Absolutely. Your credit score is based on the amount of money you owe, have owed or are in arrears. There is a formula used to compare your income to debt ratio. The higher the debt compared to your income, the lower your credit score.


Where can one go besides the Internet to get information on debt consolidation?

The debt consolidation loan means adding another line of credit, which has a negative impact. However, if you make on-time payments for at least six months, it eventually improves your payment history, credit utilization and credit mix, which will end up being a positive for your credit score debtredemption.


What kind of credit score do I need to secure a debt loan?

Most generally, debt consolidation loans are for people who have no so good credit. You could check out www.lendersmark.com for more information.....


Can one get debt consolidation loans with a bad credit?

Getting debt consolidation loans with bad credit is possible, but extremely difficult. One would have to find multiple offerings for debt consolidation loans and see which of them offer them to people with bad credit.


Credit conseling and debt consolidation or debt management?

If you try to build you credit reputation, then, low interest debt consolidation loan is just what you need. Why? Well, applying to debt consolidation companies, the whole amount of your debt will be repaid at once, hence, it will have a really good impact on your credit score as it will be definitely improved. As a result, you will be able not only to get desired debt reliefwith least efforts involved, but to face a number of benefits with one service.


What are the advantages of credit card consolidation?

Credit card consolidation consolidates all of ones debt. Credit consolidation makes it easier to pay off ones credit card debt with a lower interest rate than most credit card companies.


Does one's Debt to Income Ratio affect the refinancing of a home?

Yes. Your debt to income and available credit ratio is used to determine your credit score. You credit score is an indication to the finance company of your credit-worthiness.


What credit debt business card consolidation is available?

There are a number of options available for business credit card debt consolidation. Some of the top rated options are National Debt Relief, DebtWave Credit Counselling and Premier Debt Help.


Does medical debt from years past affect my credit?

Medical debt does affect your overall credit score. However, when buying a house or car, most of the time medical debt is not factored into the equation.